Following the launch of Teleopti’s WFM Savings Calculator this week Dennis Müller, Teleopti’s Vice President – Latin America, explores some important areas to consider when discerning the Return on Investment (ROI) for a WFM implementation.
While contact centers may balk at the price of implementing a workforce management (WFM) system, the real and much more worrisome issue is how much the lack of a WFM system could be costing them. The overwhelming majority of ongoing contact center expenses are related to staffing. Again and again, across the WFM industry, online testimonials show spectacular results achieved by organizations adopting WFM, with the majority achieving ROI within a year or less.
Calculating ROI can, however, be tricky as the factors and their weight may differ from center to center but often savings are immediately and directly seen when it comes to reduced shrinkage per agent, per day (in minutes), reduced scheduled work and more accurate staffing.
For a quick and dirty calculation, if we assume 160 hours of work per agent per month at a cost of $15.50 an hour, and supervisors spend 15 percent of their total work time on forecasting/scheduling and earning $4,000 a month, even very conservative estimates of 15 minutes of shrinkage, a 25-percent reduction in scheduled work and a two-percent improvement in staffing accuracy brings about huge savings!
Even faster payback and ROI can be achieved through cloud implementation. In fact, an Oracle Nucleus study found that cloud application projects deliver 2.1 times the ROI of on-premise ones – up 24 percent since 2012. They also found that cloud applications used, on average, 91 percent less energy than on-premise ones.
Do you know which of your initiatives are having the greatest impact on your business? Can you measure the ROI of each initiative? What is also measurable and should be measured is:
- Percentage of savings in the reduction of repeat calls
- Reduction in average handling time (AHT)
- Improvement of customer satisfaction net promoter score (NPS), by reducing their effort (a critical driver)
- Improvement in first-call resolution (FCR)
- Higher sales conversion
As for this last bullet point, according to data from the International Customer Management Institute, more than 60 percent of companies believe that contact centers are a cost and a drain rather than a source of revenue or innovation. Yet, at the same time, more than 50 percent of respondents to a Deloitte survey believe that contact centers can help increase customer retention. WFM can definitely boost your profitability, helping to transform your contact center from a cost center that largely resolves customer service issues to strategic assets that can further customer loyalty and retention.
Besides these measurable cost savings, there are many more intangible benefits, with perhaps the most crucial of these being the addition of a sophisticated “what-if” planning tool.
Furthermore, today customers demand a consistent effortless journey, no matter the communication channel. If you still are not calculating the workload volume and AHT of these different channels accurately, then you should make this a priority for 2017. It is vital to keep up and position your business to be more competitive through leveraging the latest offered in WFM scheduling and software solutions. You’ll also have heightened opportunities to convert customers or upsell to them because of better visibility into the customer journey across these channels.
Remember, spreadsheets are guesswork at best while WFM schedules can be adjusted with much greater accuracy and as often as needed to satisfy demand.
Just as each center has its own set of value and performance indicators, ROI calculators will have particular factors that they analyze and balance. Teleopti’s new Savings Calculator focuses on the savings that could be achieved through schedule optimization and adherence, lower sickness and attrition rates, and less time spent on administration. These savings are just the start of the multi-faceted benefits that contact centers reap when automating their planning processes.
Eager to see explore these results for yourself? Visit the Teleopti WFM Savings Calculator now!